The general environment in India for
crypto has been stifling at best with several cryptocurrency exchanges, like
Coindelta shutting
operations due to the governmental crackdown. The distrust towards the
burgeoning technology is such that a regulatory framework fintech sandbox
recently announced
exempted crypto-related projects altogether. Exasperated with the situation,
the latest crypto exchange to suspend operations, starting 15 May, is Coinome
that announced its plans via a tweet
on 9 May.

Even Coinome’s connection with BillDesk, a
Reserve Bank of India (RBI) governed payment service, has not been able to save
it from succumbing to the heat of the unfavorable climate in the country. The
crypto landscape in India has for the most part seen no growth ever since the RBI
ban on banks barring them from offering their services to crypto startups.

The Reason Behind the Decision

According to a Quartz report,
Coinome has even sent out explanatory emails to its users shedding some light
on the current situation and the reason behind the decision. The mail
apparently states:

“India is currently going through uncertainty on crypto guidelines and regulations. The government of India has not yet taken a decision on the regulatory framework for crypto exchanges or wallets. Further, the supreme court is yet to act upon the public interest litigation (PIL) on (the) regulation of crypto assets.”

Adding fuel to the fire are recent media reports
that hint towards the government’s inclination towards a complete crypto ban in
the country. However, the truth of these reports is a matter of contention, as
there has been no official confirmation.

Coinome, unlike Coindelta, has not closed
its operations for good and have used the term “suspended” instead, leaving the
company’s fate in limbo. They also urged customers to withdraw their savings in
the tweet, following which many customers have complained about withdrawal
issues.

No Respite in Sight

Meanwhile, the legal battle against the RBI ban drags on in the country with the Supreme Court issuing a four-week ultimatum to formulate crypto regulations to the concerned authorities, failing which the court will close all crypto related cases.

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I am a content writer with interests in life sciences and blockchain. I believe that blockchain has the potential to transform every aspect of human endeavor. I love surfing the internet, reading, learning new things, and trying new cuisines.